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Energy prices are dropping, with the cheapest deal now available on Uswitch since 2016.
The wholesale cost of energy has fallen drastically during the Coronavirus outbreak as global demand has reduced. Day-ahead wholesale electricity prices in April 2020 had fallen by 44% compared to last year, with some energy suppliers passing these savings on through the cost of their tariffs.
Based on average usage for a dual fuel energy tariff, the cheapest deal currently available to switch to through Uswitch is the Spring Sunrise V4 tariff from Green Network Energy at £799 per year. This is the lowest priced energy tariff available through the site since November 2016.
It’s not just lesser-known suppliers that are offering cheap deals - British Gas currently has a tariff priced at an average of £816 per year (Energy and Boiler Cover May 2021).
As well as driving down the cost of wholesale energy, the Coronavirus means many of us are spending more time at home and using more energy while we're there.
In fact, we've estimated that those staying at home when they'd usually go to work are using 25% more electricty and 17% more gas than they usually would - making it even more important to pay a fair price for the power they use.
Will Owen, energy expert at Uswitch, said: “Life is far from easy at the moment, but one small chink of light is that energy prices are lower now than they have been for almost two years. This will be particularly welcome news for any homes consuming more power than usual due to the lockdown.”
Those with the most to gain from switching to a better energy deal are households on a standard variable tariff - typically the most expensive type of energy plan. You'll usually be automatically placed on your supplier's standard variable tariff if your fixed energy deal has ended or if you've never switched to a fixed plan.
While the amount suppliers can charge for standard variable tariffs is limited by Ofgem's energy price cap, these plans are still considerably more expensive on average than the cheap deals currently available.
Will Owen said: “Households currently on standard variable tariffs could save up to £397 on average by moving to Green Network Energy’s cheapest deal - or up to £345 if they switched to a fixed deal from British Gas, the lowest priced tariff from a Big Six firm at the moment.”
“Now is a great time to explore whether you can save some money - no one should be paying a higher rate for their energy than they need to.”